Wednesday, January 16, 2008

HKEx looks to carbon trading

Hong Kong Exchanges and Clearing yesterday said it was looking to partner with an overseas exchange this year to create a trading platform for carbon credits or other emissions-related products.

It joins a number of its Asian rivals hoping to tap into the increasingly mature market. Mumbai-based Multi Commodity Exchange of India and the New Zealand Stock Exchange have both announced similar plans....MORE

Also from the FT:

Exchanges bet on change in climate for carbon trading

On the UN's website for the Framework Convention on Climate Change, there is an interactive map showing the location of all the emissions reduction projects under its clean development mechanism. China and India are speckled with dots - projects in the two countries account for 65 per cent of the reduction in greenhouse gas emissions achieved by the Kyoto Protocol, and therefore 65 per cent of all the carbon credits generated every year.

So it seems natural that the market for trading in such credits should be brought to Asia from Europe, where most of it now occurs. That line of thought has prompted most major Asian exchanges to try to find ways to establish a trading platform for such credits, with Hong Kong being the latest to announce such a plan. That it hasn't already occurred is partly due to a simple fact - a market needs both buyers and sellers....MORE